Nordic Credit Rating has affirmed its 'BB' long-term issuer rating on Sweden-based commercial property manager Stendörren Fastigheter AB. The outlook is stable. The 'N4' short-term issuer rating has also been affirmed.
Rating rationale
The affirmation reflects Stendörren's solid operational performance, including robust net letting and the acquisition of fully let properties, which have increased occupancy rates, margins and cash flows above our previous expectations. We expect structural trends and an improved economic outlook for 2026 to limit downside risk to occupancy, supporting the view that higher occupancy and margins are likely to be sustained over an extended period. Although Stendörren has attracted negative media attention regarding chemical contamination at its largest property in Upplands-Bro, we expect the issue to be resolved with minimal impact on the asset and limited financial implications for the company.
The affirmation also reflects financial performance consistent with prior expectations, including improved net interest coverage following the refinancing of a significant portion of debt on more favourable terms. We expect further refinancing on improved terms to lower financing costs and increase covenant headroom, with net interest coverage rising to approximately 2.3x by end-2027. The company is expected to pursue growth through acquisitions and project development, resulting in net LTV of about 54–55% and net debt/EBITDA of 11–12x in 2025–2027. We expect the company to continue to be proactive in its hedging of interest rates and enter into forward started swaps to maintain an adequate hedging level and visibility into future funding cost.
The rating reflects the company's high financial leverage and aging property portfolio with modest single-name tenant and property concentrations. It also reflects the owners' growth ambitions and Stendörren's significant project pipeline, which point to continued project development risk over the next few years. It also reflects the company's concentrated debt maturity profile and limited covenant headroom, increasing refinancing risk in adverse market conditions.
These weaknesses are partly offset by Stendörren's diverse tenant base, and improved occupancy rates and operating margins. The company's properties are mostly located in attractive logistics hubs, which supports their long-term appeal. We take a positive view of the company's interest rate hedging, with about 67% of interest-bearing liabilities hedged, mainly using interest rate caps. The average fixed-interest period, is however, short.
Stable outlook
The outlook is stable, reflecting our view that Stendörren's net interest coverage will improve to above 2x and net LTV will remain within our rating drivers, as the company grows through acquisitions and project development. We expect the company to refinance more debt on improved terms, lowering financing costs but that the debt maturity profile will remain comparatively concentrated. We anticipate favourable macroeconomic trends to support occupancy and rental growth.
We could raise the rating if the company maintains a net LTV below 50%, net interest coverage above 3.0x and a net debt/EBITDA around 9x over a protracted period together with reduced concentration of debt maturities and improved liquidity coverage for maturing bonds.
We could lower the rating to reflect net LTV above 60% or net interest coverage below 1.8x over a protracted period. The rating could also be lowered from diminishing covenant headroom or deteriorating liquidity position, or an adverse change in market conditions, impacting occupancy and cash flows.
| Rating list | To | From |
|---|---|---|
| Long-term issuer credit rating: | BB | BB |
| Outlook: | Stable | Stable |
| Short-term issuer credit rating: | N4 | N4 |
Related rating actions
i) Stendörren Fastigheter AB (publ) long-term issuer rating raised to 'BB'; Outlook stable, 17 Dec. 2024.
Related publications
i) Swedish real estate snapshot (Q3 2025): With wallets wide open, deal flow ramps up, 24 Nov. 2025.
ii) Strong financing climate for Swedish real estate companies in an uncertain environment, 16 Sep. 2025.
iii) Swedish real estate snapshot (Q2 2025): Compressing credit margins upon refinancing expected to improve interest coverage, 1 Sep. 2025.
iv) Swedish real estate snapshot (Q1 2025): Strong access to capital contains financial risk, 27 May 2025.
v) Comparison of Swedish industrial and logistics property managers, 1 Apr. 2025.
Contacts:
Gustav Nilsson, analyst, +46735420446, gustav.nilsson@nordiccreditrating.com
Elisabeth Adebäck, analyst, +46700442775, elisabeth.adeback@nordiccreditrating.com
Sean Cotten, chief rating officer, +46735600337, sean.cotten@nordiccreditrating.com
The methodology documents used for this rating are NCR's Corporate Rating Methodology published on 8 May 2023, NCR's Rating Principles published on 14 Feb. 2024 and NCR's Group and Government Support Rating Methodology published on 14 Feb. 2024. For the full regulatory disclaimer please see the rating report.